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Morning sports fans,
Breaking news… Apache Corporation has agreed to sell its Western Australian oil and gas assets to Macquarie Capital and Brookfield Asset Management, in a deal that marks a complete departure by Apache from the local energy market….another US oil major leaving the building…something we said!!!
Not happy Jan!
Another small step towards 6000 yesterday as energy stocks picked up the pace on a rise in oil prices and the mega bid from Shell for BG…these sorts of deals shine the spotlight on the whole sector and force us to reassess the value of some of these strategic plays. Suspect we may see more push and shove as we grind out a gain today…6000 is doable by weeks end…
The bigish news last night apart from the Fed spilt on when to raise rates was the news from China that it is going to subsidise their iron Ore producers halving the tax as they battle to keep their industry solvent in a sub $50 a tonne world..this is going to prove a nail in the coffin of the juniors like AGO which have gone into a trading halt pending a survival plan…if the Chinese are happy to keep their companies afloat the price will stay where it it is for a lot longer perhaps..FMG will be back in the spotlight despite a good rally yesterday..with heavily shorted stocks they do tend to bounce hard and fast..then when everyone who is a nervous nelly gets square they start to fall back again and the nellies get their courage back and sell them again…this Chinese news will embolden the shorters no doubt..
Idea of the Day-IPP bounce 9% but more to come?
Yesterday I talked IPP…baby REA…good quarterly results lit a fire under the stock and they climbed nearly 10%…didn’t chase it but now regretting it a little…suspect they will push higher…momentum is king in this market with all the computers trading away with each other…real investors are on holidays!…you only have to look at Blackmores to see the momentum effect in action…jumps 10% then jumps again…
And from IPP
Things to make me go mmmmm!!!
On this day Kurt Cobain died and he was only 27 ! Another one dead at 27…Hendrix, Morrison and Joplin…
Last night the Fed released into the wild its musings on Interest Rates..seems they were split on timing ..50:50 for June rise…let’s face it ,it will happen in 2015…Fed’s man Dudley suggested “How we react after liftoff(rate rise) will depend on how the market reacts.” Suspect it will react badly…US reporting season kicks off with Alcoa ‘beating’ estimates after some accounting jiggery pokery!!Stock down 3.3% after hours !!… Bond yields nudged higher after Treasury sold $21 billion of 10 year notes at 1.925% with the cash market closing steady at 1.91% while 2 year note yields gained to close at 0.52%
The Chicago Board Options Exchange Volatility Index fell 5.4 percent Wednesday to 13.98, the most in two weeks. The VIX slipped 2.7 percent last week.
Good to see the Senate enquiry into Tax shifting by the big boys..not that it will come to anything of course but slightly entertaining none the less and keeps Tony off the front page….
Last night oil spat the dummy after the API numbers showed massive build up in inventory….WTI slumped 5%…meanwhile in China they have announced subsidies for their iron ore by halving taxes for local producers!!!Should really help the price …not…
Following the shocking video from a witness to a US Policemen shooting a man in the back 8 times and killing him…he pleaded self defence!!!….Not really gonna fly that excuse after seeing the video he has been charged with murder!!! Just last month, in the 31 days of March, police in the United States killed more people than the UK did in the entire 20th century. In fact, it was twice as many; police in the UK only killed 52 people during that 100 year period.According to the report by ThinkProgess, in March alone, 111 people died during police encounters — 36 more than the previous month.This high number in March increased the average for police killings from every 8.5 hours, to nearly 1 police killing every 6.5 hours in the US.
Things in Yemen are heating up with Iran now showing its ‘support’ by moving a couple of really big naval ships right next door to the US big ships..
In Asia..The Hang Seng posted a spectacular rise of 961 points or 3.8% to 26,236 as mainland flows surged into the Shanghai- Hong Kong connect…and the Shanghai market hit 400 briefly!!!
A chart of the local ETF IZZ…its the Chinese ETF
This is mad…can’t really fathom why you would buy this but the Swiss government has become the first ever to issue a 10Y sovereign bond at a negative yield….
They sold a total of 377.9 million Swiss francs (about $391 million) of bonds maturing in 2025 and 2049. On the 10-year slice, the yield was -0.055%, compared with 0.011% on its most recent similar bond two months ago.
“Lower potential growth will make it more difficult to reduce high public and private debt ratios.”
The International Monetary Fund warned the global economy is caught in a low-growth trap.
Global packaging giant Amcor is buying a Brazil-based tobacco packaging company Souza Cruz for $US30 million ($39.1 million).
BOJ yesterday committed to continue on its trajectory of mass stimulus destruction…full speed ahead and damn the torpedoes!!!
And finally……keep them gags coming…love to get them even the rude ones..I am not easily offended !!
During a commercial airline flight an experienced Air Force Pilot was seated next to a young mother with a babe in arms. When the baby began crying during the descent for landing, the mother began nursing the infant as discreetly as possible.
The pilot pretended not to notice, and, upon disembarking, he gallantly offered his assistance to help with the various baby-related items.
When the young mother expressed her gratitude, the pilot responded, “Gosh, that’s a good looking baby, and he sure was hungry!”
Somewhat embarrassed, the mother explained that her pediatrician said that the time spent on the breast would help alleviate the pressure in the baby’s ears.
The Air Force Pilot sadly shook his head, and in true pilot fashion exclaimed, “And all these years, I’ve been chewing gum.”
And this from an English comic at the Melbourne Comedy festival…
“I used to go out with a giraffe. Used to take it to the pictures and that. You’d always get some bloke complaining that he couldn’t see the screen. It’s a giraffe, mate. What do you expect? ‘Well he can take his hat off for a start!'”
Have a great Thursday